Veronica Martinez Umit Bititci The Value Matrix Veronica Martinez Umit Bititci

Agenda Project Aims Current Frameworks Fundamental Gaps Value Matrix Project Method Future Work The Value Matrix

Project Aims Deliver a guide for how companies could generate value. Provide an audit assessment method for score value. The Value Matrix

Multiple Use of the Value definition Decision making Information Systems Technology Intellectual Property Human Resources Design Etc. Accounting Economics Finances Business Engineering Management Manufacturing Etc.. Value The Value Matrix

Defining Value Resides in the satisfaction and fulfilment of customers’ expectations, at the same time generating wealth for the organisations. The Value Matrix

Business Classifications Current Frameworks VOSS RICHARDSON DTI Business Classifications INHAM MILES & SNOW TREACY & WIERSEMA Product Leaders Operational Excellence Customer Intimacy Defenders Prospectors Analysers Reactors - Explain why I selected Treacy & Wiersema and not Miles & Snow: - Product leaders: are those successful organisations based in breakthroughs, introduction of new product or services. - Operational Excellence this value proposition is recognised by their ability to use effectively of technological / Human resources. - Customer Intimacy arrives with total solutions to their customers building strong customer- organisation relationship. - Our research shows that its is not good enough this classification. Due to, it is so general that if we want to describe a company into this three value propositions.. The company will lose a lot of important characteristics. For example Pl that crates vs other co. which only use the image . - Our research shows two more dimensions . Soft and Hard The Value Matrix

Fundamental Gap Current frameworks are very broad, very general, there is still a need to create more complete and integrated business classification in accordance with actual market needs to lead the organisational value. The Value Matrix

The Value Matrix HARD SOFT INNOVATORS BRAND MANAGERS PRICE MINIMISERS Product Leaders Operational Excellence Customer Intimacy INNOVATORS BRAND MANAGERS PRICE MINIMISERS SIMPLIFIERS TECHNOLOGICAL INTEGRATORS SOCIALISORS The Value Matrix

What does the Customer get? HARD SOFT INNOVATORS Customers buy new products never seen before. i.e. new products design. Customers pay for the most advance technology applied in new devices, newest product’s generation. BRAND MANAGERS Customers pay a premium price for getting status by the product. Customers need to feed some feelings such as superiority, ego etc. Product Leaders Operational Excellence Customer Intimacy PRICE MINIMISERS Customers buy ordinary products at low prices. Customers buy security in the product performance. Customers buy easy to do business with Customers buy convenience. They buy availability easy to deliver so the cost of buy is relatively minimum . Typically some of them are new e-buyers. SIMPLIFIERS TECHNOLOGICAL INTEGRATORS Customers buy tailored products/ services. They pay for technical knowledge, which is able to configure their specific needs. Customers pay for total care. SOCIALISORS Customers buy flexible service. Customers buy interpersonal relationship when the product or processes technologically reasonable standard. The Value Matrix

What companies need to do? HARD SOFT INNOVATORS BRAND MANAGERS Product Leaders Operational Excellence Customer Intimacy Companies should provide new product design, new inventions, breakthrough. Products with short lifecycle (continuous innovations and obsolescence). Frequent introduction of new products. Link feelings with images (artists, players, etc.) Build Product’s image with with a Social Status. Create emotional impact in customers. Exploit the Brand image, fashion, etc PRICE MINIMISERS SIMPLIFIERS Deliver Standard products at competitive price and good quality. Try to make efficient and effective their operation process.  Quality  Waste Offer easy accessibility and availability to their products. Orders placing and fulfilment process are streamlined to make life as simple and uncomplicated for customers . TECHNOLOGICAL INTEGRATORS SOCIALISORS Develop good understanding of customers’ businesses (products / processes) so the company can deliver efficient and effective tailored / customised products and services. Provide a friendly, intimate customer service Transmit sympathetic, helpful grace to their customers. Interpersonal service. The Value Matrix

Illustration of the Value Matrix HARD SOFT Innovators Brand Managers Product Leadership - - INTEL - MICROSOFT - SONY - 3 M - HARLEY DAVIDSON - NIKE - HIGHLAND SP. Price Minimisers Simplifiers Operational Excellence - TOYOTA - CASIO - HONDA - AMAZON.COM - EASY JET - FEDERAL EXPRESS Socialisors Technological Integrators Customer Intimacy - IBM - ICI - ROADWAY LOGISTICS - SCS - HOME DEPOT (?) The Value Matrix

Project Method Methodology Audit Assessment Method Theory Background 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 1 2 3 4 5 6 7 Relative % of work achieved Audit Assessment Method Theory Background Value Matrix Value Cube Validation Validation Study The Value Matrix

FUTURE WORK What We think we will end up with is a Value Cube + Audit Assessment Method. Hard Soft P.L O.E. C.I. Culture Mission Strategy, etc. Understand the relationship between different parts of the Cube and their unit of analysis. Recognise the characteristics of each value proposition in terms of customers and organisations. The Value Matrix

Value Cube Etc…. Production Implications Marketing Implications Customer Intimacy Operational Excellence Product Leader HARD SOFT I. B.M. P.M. S. T.I. Technology General Policy Human Resources Product Development Marketing Implications Production Implications Etc…. Manufacturing Strategy Infrastructure Engineering Mission Services Technical Resources Qualifiers Order winners Flexibility Process choice Quality Marketing Strategy Market Sales Mission Customer Orientation Marketing Operations Corporate Culture Corporate Objectives Mission Vision Strategy Business International Strategy Organisation & Systems The Value Matrix

Questions ? The Value Matrix